U.S. Tax Information for Foreign Vendors – Policy

All foreign vendors receiving payments for services performed in the U.S. (as defined elsewhere) are required to complete an IRS Form W-8 (W-8BEN, W-8ECI, W-8EXP, W-8IMY or 8233) unless one is already on file with MidAmerican Energy Company. All W-8 forms, Form 8233 and all instructions are available on the IRS website.

If the U.S. does not have a tax treaty with the foreign vendor's country of residence that exempts payments from U.S. federal income tax withholding, or if a valid Form W-8 or 8233 has not been correctly completed before payment is processed, 30 percent of the total payment to the foreign vendor may be withheld by MidAmerican Energy and remitted to the IRS.

A list of existing tax treaties between the U.S. and other countries is found in IRS Publication 901, U.S. Tax Treaties.

Based on a vendor's completed Form W-8 and/or Form 8233 or a vendor's failure to submit the appropriate form, MidAmerican Energy will determine whether withholding is required and at what percentage. If the payment is subject to 30 percent federal tax withholding, MidAmerican Energy will pay 70 percent of the approved portion of the requested amount and will submit the 30 percent to the IRS. Foreign vendors will be responsible for filing the necessary documents with the IRS to obtain a refund of the 30 percent, if permitted.

In order to be valid for tax treaty exemption, both the Form W-8 and Form 8233 (for individuals) require a U.S. taxpayer identification number.

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